Questioning Food Prices and Inflation
Hamilton Moore
A quick note to say that my newspaper is named after my old eSouth African Military Unit that was not communist based, but is named after my favourite colour. I'm a major capitalist, although that production was built up to provide for my MU at the time.
Food prices rising:
Lately we have seen a significant increase in the cost of Food worldwide. The price has increased over 200% to currently around 33 cents per level of food.
I am interested in any ideas why this is the case and would be appreciate any arguments in the comments below. I will edit this article to include the best suggestions.
I know there was inflation with the 9 year anniversary event as people were able to recover significantly more energy, but the inflationary effect started before the event and has continued after the event.
Largely, I am pleased as my primary income is generated by over 6000 Q2 food I produce every day. At current market prices even including tax, that equates to about 9 gold profit a day, excluding my other production.
No significant increase in the daily wage:
My concern is that such inflation has not been accompanied by a significant increase in the daily wage. Which means that new players have harder starts, with a significantly larger part of their daily earnings needing to go to just buying food.
Is intervention needed?
I'd also be interested in whether some form of intervention is needed? Do people think that the status quo is okay and the system will level out, or is there some government intervention possible to help alleviate the affects of this high inflation on our food markets?
Suggestions from the comment section (to be updated):
Thank you for reading,
Hamilton
Comments
usa congress decided to attrack indonesia. and the privite mu's spent lots supplying their soilders. indonesia is a storng nations that took a bit of work to conqueror.
then indonesia decided to revolt. they did not like the ofregin occupation. so they dumped their countries currency to defend their zones. which dumped money into the market .
then usa dumped some of their resever defending hawaii and california!
thus lots of money that was taken out of the money supply and stored for rainy days was spent and this new money in the markets created inflationary pressure.
also your right with the energy regens people can consume more also.
we are going to notice lots more inflation and "destabilization" of the markets. more emotional markets since the admins changed some medals to print money instead of printing gold. so prices are going to rise until the gold buyers bring in enough gold to counter act the money printing of those medals.
the game is in an expansion phase that started when they changed medals to give currency instead of gold. it will be excitijng in two more years we will see major wars, and lots new players!
Interesting perspective and history. Thanks. Will need to give it a think.
Great Article I have been perplexed by the food market along with you.
I think the prestige boosters * 9 for the 9 years celebration had a big effect. Many could get the prestige points very high with a booster and got 20 or 30 energy per 6 minutes more than in other weeks. For that they need food to regenerate. As the food market was stable before this happened, there can some shortages and prices went up very fast.
Niemand, I've actually been tracking food prices for over a month and they weren't stable. They were increasing significantly before the 9 years celebration. I've tried to check versus pollution and other potential effects, and don't believe that it is significantly short term.
They slowly increased indeed before the celebration, but the spike was there and now they are going down again, but they are still higher than before. Pollution is higher now on food, so there is more food production. Maybe that extra production will stabilize food prices.
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Food prices rose when air to air combat was added. More people were fighting and using energy, so more food was consumed. Food is a very unsexy industry, so supply tends to be fairly static.
The 9-year anniversary gave everyone a +990 energy centre, which means most players loss less energy while sleeping. That means more energy available to use, and more food required.
The PP booster from the anniversary event was mentioned above. I don't think that makes a great difference, tbh. Most players are burning EBs and not food on the quest to 40k PP. There have been a slightly higher than normal number of air strikes in the past 6 weeks or so though.
Why are prices persistently high? Because of non-responsive supply I think. There was a one-off surge in demand that lifted prices. Supply is non-responsive and inelastic, so there is no increase in production to offset the price rise. This might be because people don't understand the economy module anymore, or because people are lazy. An absence of company upgrade discount days might have something to do with it too. Whatever...
Salary is not related to the price of food. Salaries have been bid up from around 90 CC/shift 3-4 months ago to over 200 CC/shift now. It's an auction for work tickets, to produce houses. If you're using work tickets to produce food you're a fool...
Thanks for this Ilene. I still don't think that the 9 year anniversary is anything more than an exacerbating factor on a price rise that was already occurring before the event.
I like what you are suggesting about non-responsive supply. Fewer people are investing in the economic module because the returns on it are so slow. And working hard on economy takes away from your ability to sink all your energy into fighting, which is really the main focus of the current version of eRep.
I'm not sure how one would use work tickets to produce food? Is there a mechanic I'm unaware of?
Sorry, that was probably my incorrect use of terminology. Workmtickets in th context I used it is the number of employee shifts sunk into production.
At 200/work shift, using employees to produce food is unprofitable. If salaries ever decline far enough (very improbable) or food prices ever rise high enough (unlikely) then each Q5 factory can make 2200 food/day. At the moment they only make 200/day through the WaM function.
usually prices going up is due to demand being more than supply. the bottom prices gets picked up faster than new food is introduced to the market. people placing food is placing at higher prices with the up sweep.
reasons was the mentioned boosters that required a lot of food. there being more damage in battles and finally because of the extra energy people have at a 4500 energy + 4500 energy buffer more food was being consumed.
ok then we had the down turn . as the prices sky rocketed (actually frm also got very high top at 0.22) factory owners shifted their focus to food production. i invested 900 gold in 90 extra factories. and is currently close to making them self reliant. i produce 40000 a day even at 0.10 that would still be 10 gold a day. demand and supply met again and cheaper and cheaper offers pushed the price downwards.
Currently the price is still holding (possibly still rising, but I'm monitoring). The challenge of your 90 extra factories is loss of productivity due to pollution and competitiveness when the price point lowers again.
But good to see people taking advantage of the economic opportunity to invest. Hope you see good returns on your gold.